Xylitol is a natural five-carbon alcoholic sugar that has been highly valued by the food and pharmaceutical industries because of its sweetening power (as high as sucrose), potential uses as dental caries reducer and as insulinin dependent carbohydrate source for insulin-dependent diabetics. The purpose of this study was optimization of medium components and culture conditions in order to increase xylitol production by Pichia guilliermondii. Firstly, the effects of carbon, nitrogen and culture conditions were optimized by one-factor-at-a-time method, then nutritional improvement was performed using Taguchi method as a fractional factorial design in two stages. The selected carbon sources were Xylose, Fructose, Rafinose, Lactose, Manitol, Galactose, Maltose, Sucrose and Glucose. The complex and inorganic substrates were Whey, Sodium nitrate, Sodium nitrite, Potassium nitrate, Yeast extract and Pepton, respectively. The results showed that amongst different carbon sources, Xylose had significant effect on xylitol production and amongst variety of nitrogen sources, Yeast extract and Peptone were the most suitable sources, respectively. The optimum temperature, inoculum size and pH were 30oC, 7% (V/V) and 7, respectively. Xylitol production was 51.25% in the basal medium. It was concluded that by optimizing using one-factor-at-a-time and Taguchi methods, led to increase in xylitol production to 68% and 89%, respectively.